Market Measures

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The Skew Ratio of Puts To Calls

Market Measures

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Skew is a dynamic metric that is sometimes considered through the lens of a ratio; we can compare put price to call prices at the 16 delta level. This skew ratio can be used to give context to amount of opportunity that exists at the 1SD level.

Today the team conducts a study comparing a lower ratio to higher ratio, to determine if there is a difference in the potential trade opportunity given an above and below average reading. Join Tom and Tony as they discuss in detail!

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